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Americans’ Expectations Align to Encourage Home Buying

By Keosha Burns

More consumers may be looking to purchase homes with a shift in several key housing market indicators, according to Fannie Mae’s March 2012 consumer attitudinal National Housing Survey. More Americans now expect both home rental and home purchase prices to increase over the next year. Nearly half of consumers expect higher rental prices, the highest number recorded since monthly tracking began in June 2010. Thirty-three percent expect home prices to increase, up 5 percentage points since last month, and the highest percentage recorded in over a year. In addition, confidence in consumers’ views of their own finances is stabilizing—for three straight months—44 percent believe their personal finances will get better over the next year. These trends may be providing Americans with an increased sense of urgency to buy a home as 73 percent of Americans now believe it is a good time to buy a home, up from seventy percent in February.

“Conditions are coming together to encourage people to want to buy homes,” says Doug Duncan, vice president and chief economist of Fannie Mae. “Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.”

Homeownership and Renting

Thirty-three percent of respondents expect home prices to increase over the next 12 months, a five percentage point increase from last month, the highest level over the past 12 months.

The survey shows that on average, Americans expect home prices to increase by 0.9 percent over the next 12 months (up slightly since last month).

Additionally, 39 percent of Americans say that mortgage rates will go up in the next 12 months, a five percentage point increase from last month.

The percentage of respondents who say it is a good time to buy rose by three points to 73 percent, the highest level in over a year, while the percentage of respondents who say it is a good time to sell rose one point to 14 percent this month.

South Florida Residential Inventory

Compiled by Condo Vultures Realty using the South Florida Shared Multiple Listing Service. Active listings are properties where no current sale contract exists; pending sales are properties in which a contract for sale has been executed, but not yet closed. Listing brokers control the status of a property listing.

I can assist you with all your South Florida real estate needs. Contact me at (305) 329-4929 or [email protected]

Survey Shows Consumer Attitudes More Positive

A new survey shows that Americans’ concerns about key economic and housing issues are beginning to subside.

Fannie Mae’s February 2012 National Housing Survey shows that consumer attitudes have stabilized across most indicators—including personal finances, housing, and employment—compared to late summer and fall of 2011. The survey polls 1,003 Americans via telephone interview to assess their attitudes toward owning and renting a home, mortgage rates, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts.

The survey shows that the most dramatic change revolves around the economy—35 percent of Americans now feel that the economy is on the right track, up 19 percentage points since November, and 57 percent think the economy is on the wrong track, down 18 percentage points since November.

Americans’ confidence about personal financial situations, household income, and household expenses, as well as attitudes about homeownership and renting is holding at steady levels. Also important to note, Americans’ concerns about losing their job in the next 12 months has stabilized since the late fall, with 76 percent of Americans saying they are not concerned in February 2012, compared to 70 percent in November 2011. Fannie Mae believes that the recent pick-up in the pace of hiring over the past few months is directly responsible for alleviating consumer concerns about unemployment.

Here are some additional highlights from this important survey:

Only 12 percent of respondents believe that their personal financial situation will worsen in the next 12 months, a 3 percentage point drop from January and the lowest value in over a year.

33 percent say their expenses have increased significantly over the past 12 months, a 3 percentage point decrease from last month and the lowest level in the past 12 months.

28 percent of respondents expect home prices to increase over the next 12 months (consistent with last month), while 15 percent say they expect home prices to decline (down 1 percentage point since last month).

10 percent of Americans say that mortgage rates will go down in the next 12 months, a 2 percentage point increase from last month.

The percentage of respondents who say it is a good time to sell rose by 3 percentage points to 13 percent, the highest level in over a year.

45 percent of respondents think that home rental prices will go up, a 2 percentage point increase from last month.

Let me assist you with all your South Florida real estate needs. Contact me at (305) 329-4929 or [email protected]

Foreclosures Trending Downward

New figures show that foreclosures are down nationwide. There were 830,000 foreclosures completed in 2011 compared to 1.1 million in 2010. Florida had the most homes in the foreclosure process, almost 12% of all mortgaged homes.

I hope this information is useful to you. Contact me for all your South Florida real estate needs at (305) 329-4929 or [email protected]

South Florida Home Prices On The Rise

Home values in Palm Beach, Broward and Miami-Dade counties inched up 0.2% from November, according to the Standard & Poor’s/Case-Shiller home price index. In the rest of the nation home prices in 2011 ended on a downer. In South Florida, the number of homes for sale has declined sharply over the past year.

Case-Shiller’s “Miami” real estate index was one of only two to increase between November and December. While still down about 3% from a year ago, the December yearly decline was the lowest for 2011.

The monthly gain for December was up a measly . 2%. But, out of the 20 metropolitan areas tracked by Case-Shiller, only Phoenix joined Miami in showing an increase in December.

Competition among buyers is heating up which is helping to stabilize prices in some areas. Case-Shiller is one of the most respected measures of home prices because it tracks the price of the same house over time.

Let me assist you with all your South Florida real estate needs. Contact me at (305) 329-4929 or [email protected]

Miami’s Luxury Condo Market Surges

Foreign buyers acquired more $1 million condos in 2011 than in the last year of the South Florida real estate boom in 2006, according to analysis of data from the Southeast Florida Multiple Listing Service Database.

Buyers purchased nearly 590 condos for at least $1 million each in 2011 after acquiring less than 500 high-priced units in 2006.

The 2011 luxury condo resale activity represents a 29% increase from 2010 when fewer than 460 units were purchased for at least $1 million each in Miami.

At the top of the list for the most expensive condo resale in the year 2011 is a penthouse in the Setai Resort & Residences in Miami Beach that sold for $21.5 million. Buyers also paid $11.5 million for a penthouse in the Apogee condominium and $10.6 million for a high-floor unit in the Continuum On South Beach.

Nearly 20 ultra-luxury condominium units are on the resale market for at least $10 million each with one unit asking $38 million in Bal Harbour.

At least 5 new luxury condo towers are planned or under construction in Miami-Dade County where the proposed sales prices are expected to exceed $1 million each.

For more information on South Florida real estate please contact me at (305) 329-4929 or [email protected]

Miami, FL Is Number One

Miami, FL is the number one town on REALTOR.com’s Q4 Top 10 Turnaround Towns Report. According to the Miami Association of Realtors, sales of existing single family homes in the Miami Metropolitan Area increased 51% in the 3rd quarter compared to a year ago. Miami has half as many properties in Realtor.com’s inventory of listings as it had a year ago. Also, Miami continues to be a hot market for international buyers. In May, international buyers purchased about 60% of the existing houses and condos and 90% of the newly built homes in Miami. According to the experts, Miami, one of the hardest hit foreclosure markets, is on its way back.

Fort Lauderdale, FL made the list as well coming in at number eight. The list also includes several other Florida cities.

I can help you with all your South Florida real estate needs. Contact me at (305) 329-4929 or [email protected]

Luxury Portfolio International and EWM Realtors

Luxury Portfolio International the largest global network of premier locally branded companies dominated by many of the world’s most powerful independent luxury brokerages. The website was launched in 2005 and in its first year featured more $1 million-plus residences than other luxury real estate organizations. The network continues to grow and now markets over 25,000 of the world’s most remarkable homes annually and attracts over 1.2 million high-net-worth visitors a year. By presenting a gallery of the finest luxury properties and brokerage worldwide, the brand is recognized throughout the world as the luxury standard of excellence.

In addition, they are unmatched in the global arena, with properties in over 45 states and 27 countries, website visitors from over 200 countries/territories every month, site translation in nine languages, conversion to multiple currencies and a total inventory of available properties totaling almost $40 billion.

The 200 luxury affiliates represent the luxury component of an organization which encompasses nearly 550 companies, 4,600 offices and 140,000 associates producing $225 billion in annual home sales in 30 countries. Based in the United States, Luxury Portfolio InternationalTM is backed by the experience of the most well respected and well known experts in luxury real estate in markets worldwide. This group collectively has decades of experience in the high-end luxury real estate market.

For more information on buying or selling your property please contact me at (305) 329-4929 or [email protected]